Brokers, buyers, and tenants utilize Crexi’s commercial real estate tools to thrive in the Reno market. Nationwide, CRE investors and businesses eye Reno as an attractive investment market with stable fundamentals, encouraging growth, and attractive cap rates. Crexi connects interested buyers and tenants with detailed market research, a vast property inventory, and easy access to Reno brokers.
Active investors and tenants make up approximately 92% of Crexi’s digital traffic as each seeks out their ideal commercial property.
In Reno and the surrounding neighborhoods, brokers employ Crexi’s robust listing, lead management, and marketing tools to close deals. The open, easy-to-use marketplace allows Reno commercial brokers to interact directly with buyers and tenants who’ve already indicated their interest in the region.
As of this writing, Crexi’s transaction tools have helped complete more than $300 billion in property deals. The digital marketplace has listed over 400,000 properties worth more than $1.2 trillion since Crexi’s 2016 launch.
Crexi proudly serves Reno, Tahoe, Carson City, Washoe City, and the entirety of the Reno-Sparks MSA as the fastest-growing digital commercial real estate marketplace.
The State of Commercial Real Estate in Reno
Note: the current COVID-19 crisis has impacted this data. The coronavirus’ long term impact has yet to be determined, but CRE professionals should keep these developments in mind when evaluating the following information.
Located in northwestern Nevada, Reno is just two hours from Sacramento and four hours from the San Francisco Bay Area.
Once known mainly for its casino and tourism industry, the Reno-Sparks MSA (Metropolitan Statistical Area) is becoming a high-tech employment center thanks to significant investments from companies such as Apple, Google, Microsoft, Panasonic, and Tesla. Nicknamed “The Biggest Little City in the World,” Reno is the 2nd most populated metro area in Nevada after Las Vegas.
Job creation in Reno was robust last year, with the same growth predicted for 2020. Healthy employment growth supports some of the strongest net migration rates and household formation the Reno metro area has seen.
Reno Regional Breakdown
Nevada was in the Top 10 states for population growth over the last decade, with Reno aiding projects such as the Tesla Gigafactory that have been bringing new people and jobs to the metro area. The Reno-Sparks metropolitan area is the 2nd largest area in Nevada after Las Vegas and includes Washoe, Storey, and Lyon Counties and the state capital Carson City.
Reno is home to over 225,000 in the city and over 470,000 residents in the metropolitan area. In 2019, Reno’s population growth was 1.3%, with the Greater Reno-Sparks-Tahoe area ranking one of the fastest-growing regions in the US. Population growth is expected to rise by 8.6% by 2023. The median age in Reno is 38.4 years, on par with statewide and nationwide averages.
According to a forecast by Kiplinger, Nevada ties with Utah as the best state for job growth in the US. High tech employers such as Apple, Google, Microsoft, and Tesla have turned the Reno metro area into a major technology center.
The Reno MSA GDP is over $24.4 billion and has grown by 11% over the past ten years. Job growth in Reno was 2.45% in 2019, with an unemployment rate of just 3.4% and 65% of the city’s workforce in the trade and service sectors. Reno’s business base is gradually diversifying with the expansion of distribution, warehousing, and manufacturing facilities.
Key industry sectors in Reno include gaming and entertainment, technology, advanced manufacturing, distribution and logistics, and renewable energy. Top employers in the Reno metro area include Washoe County School District, Renown Medical Center, major casinos such as Peppermill Reno, Tesla, and the distribution centers for Amazon and Walmart.
Approximately 89.8% of Reno residents have a high school degree or higher, while 31.3% hold a bachelor’s degree or an advanced degree. The University of Nevada, Reno, and Truckee Meadows Community College are two of the region’s largest universities and colleges.
Reno Industrial Market
The Reno industrial market continues to display resilience during the pandemic as one of the region’s top performers. The market saw 1.3 million square feet of positive net absorption and 1.8 million square feet of new industrial leases in Q2 2020. Year to date absorption for Reno industrial properties is 2.16 million square feet, with vacancy rates averaging at 5.9%.
Total industrial inventory in Reno hit 93.6 million square feet in Q2, with an average asking rent of $0.56 per square foot per month. Asking rents for industrial space in Reno range from $0.51 per SF per month for bulk space to $0.89 per SF per month for flex space. The largest industrial submarkets are Sparks, North Valley, East Valley, and South Reno.
Reno Office Market
The Reno office market remains well-positioned to weather the pandemic thanks to strong market fundamentals. According to CBRE’s most recent office report, total office inventory hit 6 million square feet with an average asking rate of $1.81 per square foot per month. The asset type saw slightly increased vacancy rates at 8.8% and negative net absorption of 22,505 square feet in Q2 2020. Interestingly, Class B office absorption has proven resilient, adding 23,825 square feet this year to date.
Asking office lease rates in Reno range from $2.19 per square foot per month for Class A office space in Meadowood to $1.25 in the Airport submarket. The most active submarkets for office assets are Meadowood, Downtown, and South Reno.
Reno Retail Market
Tenant demand and retailer activity have been understandably scattered during the first half of 2020. Essential businesses such as grocery and discount retailers account for about 80% of Reno’s total leasing activity this year to date.
Sixteen million square feet were listed on the market in Q2, with an average asking rent: $1.44 per square foot per month. The most resilient retail tenants, including e-commerce, grocery, home improvement, and health care, kept the sector afloat with a 6.4% vacancy rate. Q2 2020 saw negative 11, 647 square feet in Q2, with over 200,000 square feet of retail product currently in development.
The largest retail submarkets are Sparks, Meadowood, South Reno, and Spanish Springs.
Reno Multifamily Market
Multifamily developers in Reno are active thanks to the economic expansion and population surge in the Reno metropolitan area, making it one of its top-performing assets.
There were 203,338 total housing units in Reno in Q2 2020, with 58% of them owner-occupied. Average monthly multifamily rent hit $1,341, with vacancy rates averaging at 3.51%.
Reno currently has 4,161 new multifamily units under construction, with 5,241 more planned for construction in 2020.
How Crexi Connects Buyers and Tenants to Reno CRE Properties
Regardless of their location, buyers and tenants browse Crexi’s open marketplace to discover commercial properties in Reno quickly. As one of Nevada’s fastest-growing populations, Reno’s stable, single-digit vacancy rates and growth potential make it an attractive MSA across asset classes.
Both tenants and buyers explore Reno property for sale and lease using Crexi’s free search functionality. Interested parties can quickly filter searches by price/rate per square foot, asset type, square footage, cap rate, business type, and even neighborhood.
Once they’ve found their perfect property, investors and tenants can directly connect with the listing’s broker using Crexi. Those interested in Reno properties can download offering memorandums (OM) and brochures, contact brokers, and even submit letters of intent (LOI) using Crexi’s secure platform.
Intelligence Connects Investors to Data and Market Knowledge
Commercial investors and tenants searching for the perfect property rely on Crexi Intelligence to inform their CRE decision-making. Intelligence supplies CRE professionals with a database of thousands of third-party verified sales comparables and more than 50 MSA market reports. Crexi Intelligence places commercial real estate data directly in buyers’ and tenants’ hands, helping them make the best CRE decisions possible.
Intelligence is accessible to buyers, sellers, and tenants on a subscription basis.
How Reno Brokers Win with Crexi
Crexi features nearly 200 Reno properties for sale within the city’s limits and over 700 listings for lease within the metropolitan area. Industrial and multifamily are among the most viewed Reno properties, attracting tenants, investors, and those searching for timely 1031 exchanges.
Throughout the Reno MSA, brokers can list and manage properties in minutes across various asset classes, including:
- Industrial units
- Multifamily units
- Mixed-Use developments
- Hospitality facilities
- Retail buildings
- Office buildings
- Land Parcels
- Non-traditional buildings such as data centers, medical offices, etc.
Brokers utilize Crexi’s online tools and marketplace to guide their listings from list to close. Reno realtors can easily engage with leads and monitor buyer activity in real-time. Too, Crexi’s encrypted file vault allows brokers to collect and store due diligence paperwork entirely online safely.
However, Crexi’s broker technology’s potential reveals itself with Sale PRO, Lease PRO, and All PRO.
Crexi All PRO
Crexi Sale PRO and Lease PRO supercharges brokers’ processes with high-performing lead management tools, marketing analytics, and branded customized lead reports. PRO listings automatically receive preferential placement at the top of Crexi’s search pages, immediately visible to both buyers and tenants.
Crexi’s email blasts send out PRO listings to thousands of relevant tenants and buyers across the US weekly. Powered by machine learning optimization, Crex’s marketing emails tailor highly relevant properties to each user’s search behavior. This customization wins Crexi emails high engagement, with a click-through rate (CTR) average of 10-15%.
Crexi PRO subscribers can also enjoy unlimited access to Intelligence at no additional cost. With Intelligence, PRO users can explore over 13 million sales comparables, more than 40 million property records, and dozens of MSA market reports to help them navigate the most successful deals.
Brokers — including those in the Reno MSA — use Crexi PRO to directly connect with the nearly 8,400 leads interested in Reno and 3 million leads across the US added in just 2020.
On average, PRO brokers gain 125% more leads and close six-to-eight more deals on average than non-PRO users.
Contact email@example.com to learn more about All PRO.